The resolution providing for the issuance of such bonds may contain
such provisions for protecting and enforcing the rights and remedies of the
bondholders as may be reasonable and proper and not in violation of law,
including covenants setting forth the duties of the Authority in relation to
the purchase or sale of obligations, the making of student loans, the insurance
of student loans, the fees, charges and premiums to be fixed and collected, the
terms and conditions for the issuance of additional bonds and the custody,
safeguarding and application of all moneys. It shall be lawful for any bank or
trust company incorporated under the laws of the State which may act as
depositary of the proceeds of bonds, revenues or other money hereunder to
furnish such indemnifying bonds or to pledge such securities as may be required
by the Authority. Any such resolution may set forth the rights and remedies of
the bondholders and may restrict the individual right of action by bondholders.
All expenses incurred in carrying out the provisions of such resolution may be
treated as a part of the cost of administering this Article and may be payable,
together with other expenses of operation and administration under this Article
incurred by the Authority, from the Loan Fund.

In the discretion of the Authority, any bonds issued under the
provisions of this Article may be secured by a trust agreement by and between
the Authority and a corporate trustee, which may be any trust company or bank
having powers of a trust company within or without the State. Such trust
agreement or the resolution providing for the issuance of such bonds may pledge
or assign the fees, penalties, charges, proceeds from collections, grants,
subsidies, donations and other funds and revenues to be received therefor. Such
trust agreement or resolution providing for the issuance of such bonds may
contain such provisions for protecting and enforcing the rights and remedies of
the holders of such bonds as may be reasonable and proper and not in violation
of law, including covenants setting forth the duties of the Authority in
relation to student loans, the acquisition of obligations, insurance, the fees,
penalties and other charges to be fixed and collected, the sale or purchase of
obligations or any part thereof, or other property, the terms and conditions
for the issuance of additional bonds, and the custody, safeguarding and
application of all moneys. It shall be lawful for any bank or trust company
incorporated under the laws of the State which may act as depositary of the
proceeds of bonds, revenues or other money hereunder to furnish such
indemnifying bonds or to pledge such securities as may be required by the
Authority. Any such trust agreement or resolution may set forth the rights and
remedies of the bondholders and of the trustee, and may restrict the individual
right of action by bondholders. In addition to the foregoing, any such trust
agreement or resolution may contain such other provisions as the Authority may
deem reasonable and proper for the security of the bondholders. All expenses
incurred in carrying out the provisions of such trust agreement or resolution
may be treated as a part of the cost of carrying out the purposes for which
such bonds shall be issued.

In addition to all other powers granted to the Authority by this
Article, the Authority is hereby authorized to pledge to the payment of the
principal of and the interest on any bonds under the provisions of this Article
any moneys received or to be received by it under any appropriation made to it
by the General Assembly, unless the appropriation is restricted by the General
Assembly to specific purposes of the Authority or such pledge is prohibited by
the law making such appropriation; provided, however, that nothing herein shall
be construed to obligate the General Assembly to make any such appropriation. (1967, c. 1177; 1971, c. 392, s. 8.)